After visiting Skogar folk museum we were prepared to visit this pool and hopefully have a nice dip, however we never got to it! We had GPS coordinates to the parking area and were prepared for our 20 minute walk. It was obvious that an old path to the pool used to exist but after around a couple of minutes proved impossible to follow, as what looks like a gravel embankment has been built across it. This was not a problem to climb across, however coming down the mountain to the left we encountered a stream which seemed to be around four feet wide and after aimlessly walking up and down along the banks we could not find any place to ford it without getting wet by falling in! The rocks looked slippery and eventhough some conscientious person had put a plank across the water, this looked precarious and narrow so we did not attempt crossing it, eventhough we saw a couple who managed to cross over.
I have no idea if another way to the pool exists as there was none that was obvious.

Our hosts in Hvolsvöllur told us how to find this. It's not easy to get to unless you know where you're going and up until nearly the point when you fall into the pool you might not realize you're going to one, but this cute pool built into the side of a mountain in Iceland is picturesque and solidly worth visiting.

As of our trip (July 2012) the three changing rooms were fairly dank, miserable spots that seemed like they might be interrogation chambers, but they get the job done and the pool itself is very relaxing. The mountain side of the pool actually uses the mountain as its wall, so be careful not to swim into it. Hot water flows in from the deep end, which was probably easily deep enough to jump into, but we chose not to.

It's totally charming and an experience you are not likely to forget - try to find it!

If travelling near Skogar look out for a sign to Seljavellir.
Its a small 1 star pool in a 5 star mountain setting.
Either park at the modern pool or cross the small ford to the end of the field. Then its a 10 min walk along the path.
The pool and changing facilities are very basic but the setting is stunning and the water very warm.
Link below
http://www.south.is/activities/Swimming-pool/Seljavellir/43/default.aspx